Gold prices inched up on Thursday, driven by growing demand for the metal as concerns over the U.S. economy mount. The latest employment data, which fell short of market forecasts, raised expectations that the Federal Reserve could soon cut interest rates.
Gold Futures and Spot Prices Continue to Climb
Gold futures for December delivery rose by 0.32%, or $11, to settle at around $3,383 per ounce. Spot gold prices also increased, gaining 0.10% or $3.5, to trade near $3,402 per ounce.
Soft Job Growth Supports Gold Rally
The rally was supported by weak employment data from the U.S. private sector. Figures released by ADP showed that only 37,000 jobs were added in May—well below the expected 111,000. This marks a further slowdown from April, when just 60,000 jobs were created.
The disappointing numbers suggest a weakening labor market and a broader slowdown in the U.S. economy. As a result, investor bets on a Fed rate cut have increased, boosting gold’s appeal as a safe-haven asset.
Trump Urges Immediate Rate Cuts
Adding to the pressure on the Federal Reserve, former President Donald Trump called on Chair Jerome Powell to lower rates without delay. Trump argued that the soft jobs report points to an economic downturn and warned that waiting too long could deepen the slowdown.
Geopolitical Risks Add to Gold’s Momentum
Gold also benefited from heightened geopolitical tensions. In a phone call with Trump, Russian President Vladimir Putin threatened to retaliate after a Ukrainian attack on Russian aircraft during the “Spider Web” operation. Trump responded by saying peace in Ukraine is unlikely anytime soon—comments that have increased global uncertainty and further lifted gold demand.
Precious Metals Follow Gold’s Lead
Other metals also posted gains. Silver futures surged 3.47% to $35.85 per ounce. Platinum rose 3.80% to $1,130.40, and palladium climbed 2.50% to $1,033.00 per ounce.
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